Lucent Technologies Inc. (NYSE/LU) is really a inventory that requirements some significant loving. This former Wall Road darling has long been discarded from the herd and is particularly now on the lookout for some enjoy on the Street. Trading at virtually $80 in late 1999, the stock like lots of Other people while in the communications sector has been beneath serious strain in recent times, experiencing lackluster earnings advancement and anemic gains.
Lucent has also gone through its share of lawsuits. Even with some Restoration from the communications sector, the realm stays a tricky spot to work. The competition is fierce, pricing pressures are expanding, and margins are low.
That may be the reality for that communications sector, a region That is still in limbo offered the current weather. So exactly what is Lucent suppose to try and do? Shareholders have misplaced persistence in the ability of chairman and CEO Patricia File. Russo in turning around the company and rendering it a star once again.
Down 96% from its late 1999 significant, the fact is investors who bought at that level or simply lessen will most likely under no circumstances Get better their losses. Lucent will never be in excess of a cash loss for the ones that acquired at the higher and inflated price ranges.
The corporate is earning dollars and its ahead cost-earnings numerous is fair, but provided the slow anticipated expansion the shares upside might be limited.
Presented the mixed outlook 소액결제현금화 to the communications sector, Lucent is trying to secure a important hug from rival and in addition troubled France-centered Alcatel SA (NYSE/ALA).
Lucent just after currently being turned down by now by Alcatel in 2001 is hoping this next endeavor is satisfied with hugs and kisses, something they love to do in France.
Alcatel is reviewing the potential merger with Lucent, but it is within the motorists seat as its place is far better than that of Lucent. Quite simply, Lucent requires Alcatel a lot more.
But for Alcatel, a merger with Lucent could give the business additional publicity and a longtime network in The usa.
The deal if consummated could be the 1st of numerous extra to return as struggling telecom organizations glance for ways to cut Price tag and contend a lot more correctly.
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